Perhaps the Governator reads Taxable Talk (though I doubt it). In any case, Governor Schwarzenegger will propose tomorrow to:
- Use $1.6 billion of the new revenues to retire debt;
- Use $1.6 billion for the reserve account;
- Use $2 billion to compensate schools for money “taken” over the past two years; and
- Spend $400 million on disaster preparedness.
Of course, who know what the Democratically controlled legislature will do, and how active the Governator’s red pencil (line item veto) will have to be. Don’t be shocked if he needs multiple red pencils this year.
Meanwhile, speculation is that Google is the major cause of the extra revenue. Not through taxes on Google itself; rather, through taxes on the sale of stock by Google insiders. cnet believes that it could amount to 10% of the tax revenue, $450 million.
News Stories: Governor’s Budget Plans (Scripps-Howard); Google/cnet